Becoming a Mac retailer?

Been there.

Its not that easy to become an Apple Reseller. Apple wants businesses with proven records of success and obviously some good working capitol so that you can actually have stock and not make Apple look bad by going out of business.

You can get information by visiting here.

You could start off by being an Apple Consultant as well and work from your basement at first. (Which is how a lot of Mac dealers start off)

Here's a bit more detail and requirements on being a reseller from Apple themselves. Its on the US site as I can't find a link on Canada's site. Some of the highlights:

Apple Reseller Authorization
Apple’s Reseller authorization is designed for businesses that offer a selection of software and hardware solutions sold at their retail locations, or the configuration and sale of specialized business solutions such as accounting by calling directly on customers.

Basic reseller requirements include but are not necessarily limited to the following:



Purchase at minimum $100,000 of Apple hardware each contract term (12 months).

Provide presale and post sale support at Reseller locations(s) or customer site(s) through a consultative “face-to-face” sales approach.

Offer hardware, software, and network customization to meet the needs of customers.

Develop and execute activities that feature Apple product.

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There's some info to chew on.

Indeed.

I thought I'd write back with what I've learned. I talked to an account rep at EMJ, who appear to be an exclusive distributor for Apple Canada. I was told that the official minimum purchase from them is $100K/year in hardware, but he did say that he'd be surprised if this was enforced because he knows many other resellers who aren't hitting this target.

In terms of profit margin, it's lousy on consumer (3-5%) and better on pro machines (10-15%). On accessories, it can get to 20-50%!

The EMJ folks were funny. After my general inquiry email, they were sending me credit forms to sign up for an account with them. They seemed fairly liberal about the authorization process, like "yeah go ahead and sign up, and we'll start shipping you the goods as you order them".

Actually, it seems to me that the true prohibition to starting a reseller is not Apple authorization, but getting retail space. In my town, there's an empty office on the main street (formerly occupied by ScotiaBank) that would be PERFECT. But for 1500 square feet of it, it would cost $24,000/month ($18/sq.ft). Outrageous!!

Surely there are cheaper places to go. But there's no way I could start like that. Does anyone know how it works out starting up with an online-only venture?

Cheers,
Aaron.

ehMax said:

Been there.

...

You could start off by being an Apple Consultant as well and work from your basement at first. (Which is how a lot of Mac dealers start off)

Click to expand...

I'm curious as well about the Consultants Network. I had asked a few Ontario resellers about it, and the answers seemed to be lukewarm at best. I'd have thought that they would have been more supportive of the program, especially if they could rely on these consultants for outsourcing some of the services which the dealers themselves could not provide.

We've got a few Authorized Dealers and from what I gather, one or two Apple Consultants here on EhMac. How do each of you feel about the Apple Consultants? Is it competition or are they good for complimenting your existing business.

How does the rest of the business community here feel about Apple Consultants? Do you wish that there were more of them available? Have you ever used one, what was your experience like? Would you use them again? If you've never used one, would you if one was available for something that you required?

Love to have the feedback and I'm guessing that Aaron might be interested in the comments as well.

Thanks,

It is the retail location that's the problem....

Hi all,
Thanks for all your answers. It's been almost two years to the day since I opened this topic, and nothing has resulted. Strangely, that office space I had my eye on is still available, and yes indeed I'd misunderstood the rental cost. LOL

To provide an update: I applied for reseller authorization to Apple Canada and was rejected because I didn't have a retail location. What I did have was a great (if I do say so myself) ecommerce Web site and a unique way to market the hardware.

Almost as much as I would like to launch a Mac retail business, it's the very real need for legitimate Mac support in Durham Region that really drives me. I want there to be that central resource complete with pre-sales support, the latest parts on display, a service centre and a gathering place for the local Mac community. I honestly believe that this region of Canada presents a solid opportunity for the right business.

Some suggestions have come that I should partner with an existing retailer in the Toronto area and open a branch location. I'm not a retailer by trade so I don't know what the implications are.

Still, as I contemplate having to drop my Powerbook 45 minutes away for repair in Markham, I have to shake my head and ask "why is it so hard to launch a retailer for Apple?" I would love to hear from existing resellers.

Cheers,
Aaron.

aaron said:

To provide an update: I applied for reseller authorization to Apple Canada and was rejected because I didn't have a retail location. What I did have was a great (if I do say so myself) ecommerce Web site and a unique way to market the hardware.

Some suggestions have come that I should partner with an existing retailer in the Toronto area and open a branch location. I'm not a retailer by trade so I don't know what the implications are.

Click to expand...

If you're not a retailer at heart, then abandon the idea of a retail store.

$2,400 a month rent is outrageous -- you're going to have a fixed overhead of something like $5,000 a month -- that means you would need to sell about $70,000 of PowerMacs or $250,000 in iMacs and Minis every month to break even

Obviously this is an oversimplification, but its a reality that Apple prevents you from making good margin due to the AppleStore/Free shipping that any Canadian can take advantage of. Remember too that when you sell an iMac G5 for 3% margin, and take a Visa or Mastercard, the charge card company takes 2% leaving you with 1%. To you have to survive on getting good margins on software, accessories and labour -- and hope the customers don't buy the software and accessories mailorder. SO -- you end up working 40 hr. a week in the store and 40 more hours a week doing consulting, networking, repairs and installs to pay for the store overheads.

Wouldn't it make more sense to let the customers buy from Apple online, and then you work 40 hrs per week doing the consulting and networking, and put the money in your pocket?